Why do PPP-projects fail?

Public Private Partnership, or PPP, refers to a contractual arrangement between a public authority and a private sector entity, under which the private sector party is committed to both construct and maintain a building, i.e. a school, hospital etc., for a certain period of time, typically for 15-25 years. The private sector party usually is a consortium made up of a building contractor, a maintenance company and bank lender.

Many times the parties to a PPP have great expectations of the project. However, quite often these projects also tend to fail even if they are carefully planned through an appropriate allocation of risk. Most of PPP-projects fail, because they dramatically exceed the budget. We have a new approach to offer to solve this problem; an alliance between the parties.